Location: Delta County, CO | Metro: Delta County, CO
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $970 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $387,400 | 0.34% | F |
| 3BR | $1,800 | $502,555 | 0.36% | F |
| 4BR | $2,160 | $608,026 | 0.36% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 81419, which encompasses Hotchkiss, CO, in Delta County, operate under specific parameters that landlords need to understand. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,130. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent.
In contrast, the local market rent for a two-bedroom unit in ZIP 81419 is higher, running at an average of $1,314 according to Census ACS data. This discrepancy means that landlords who participate in the Section 8 program might face a financial gap between what the voucher pays and what they could potentially charge in the open market.
To walk through how a voucher payment works, consider the following breakdown:
The voucher holder is required to contribute a portion of their income towards rent, typically around 30% of their adjusted monthly income. If a tenant's contribution is $300, this amount is added to the SAFMR to determine the total reimbursement.
Utility allowances can also be factored into the total reimbursement. These allowances vary but generally cover a portion of heating, cooling, water, and electricity costs. For ZIP 81419, let’s assume a utility allowance of $150.
The total reimbursement for a landlord would thus be the SAFMR plus the tenant’s contribution plus the utility allowance. In our example, this totals $1,580 ($1,130 + $300 + $150).
Note that the SAFMR is set specifically for this ZIP code, reflecting the unique economic conditions of Hotchkiss, CO. This localized setting helps ensure that the rental assistance aligns more closely with the actual cost of living in the area.
Given the local market rent of $1,314, landlords in ZIP 81419 participating in the Section 8 program would still receive a surplus when accounting for the tenant’s contribution and utility allowances. In this scenario, the typical surplus for a two-bedroom voucher reimbursement would be $266 per month ($1,580 - $1,314).
This surplus provides some cushion for landlords, allowing them to potentially cover maintenance costs, property taxes, or other expenses associated with renting out a two-bedroom unit. However, it is important to recognize that the SAFMR and market rent figures can fluctuate annually based on changes in the local economy and federal guidelines.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.